Debt Payoff Analyzer

Both methods pay the minimum on every debt and put all spare money toward one target debt, but they choose the target differently. The Avalanche method attacks the debt with the highest interest rate first, which mathematically minimises the total interest you pay. The Snowball method attacks the smallest balance first, which clears individual debts sooner and gives you visible wins that help maintain momentum.

The Avalanche method is optimal on paper because it saves the most money and time. The Snowball method often wins in practice, because finishing a debt quickly is motivating and studies show people are more likely to stick with it. The best method is the one you will follow to the end, so if the interest difference between them is small, choosing the approach that keeps you engaged is a reasonable trade.

Compare the interest rate on the debt with the return you could realistically expect from investing, both after tax. Paying down a debt is a guaranteed return equal to its interest rate, so clearing high-interest debt such as credit cards almost always beats an uncertain market return. For low-interest debt the maths is closer, and many people split the difference by investing while still overpaying modestly.

Yes. The methods assume you keep paying at least the minimum on every debt to stay current, then direct any additional money to the target debt on top of its minimum. As each debt is cleared, its old minimum rolls into the amount attacking the next debt, which is what accelerates the later payoffs.